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2022 | OriginalPaper | Buchkapitel

3. Corporate Governance in the Banking Sector (CGBS): A Literature Review

verfasst von : Bruno Buchetti, Alessandro Santoni

Erschienen in: Corporate Governance in the Banking Sector

Verlag: Springer International Publishing

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Abstract

This chapter investigates how researchers across the world are trying to disentangle the CGBS concept. It scrutinizes the main CGBS articles published from 2000 to 2020 and identifies the most studied CG areas, that is, risk appetite, board diversity, ownership structure, role of CEO, compensation, Islamic banking system, CSR (corporate social responsibility) and ESG (environmental, social, and corporate governance), and political connections. Finally, it identifies the main results and provides ad hoc tips and advice to regulators and researchers.

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Vorheriges Kapitel Corporate Governance (CG) Theories and the Banking Sector

Nächstes Kapitel CG Stock Markets and the Environmental, Social, and Corporate Governance (ESG) Indicators

Scopus is an Elsevier’s abstract and citation database. It collects peer-reviewed articles from all over the world.

The SJR is an index of weighted citations per article over a period of 3 years (please refer to https://www.scimagojr.com/aboutus.php).

With the purpose to guarantee high research standards, both authors have performed this process independently. The authors have resolved disagreements around the inclusion/exclusion of four articles.

The Scopus database, based on keywords, can generate multiple not relevant results; this happens when common keywords are investigated (e.g., bank). At the same time, this mechanism avoids losing relevant articles. The inclusion criterion entailed that (a) “boards” and/or “governance” and/or “directors” being clearly identifiable constructs in the article, (b) these constructs were studied in a banking environment, and (c) we also removed research that used the search terms with a completely different meaning.

No articles were published in 2000, 2001, 2003, 2004, 2006, or 2011.

Also in this case, both authors have performed the analysis independently. Once completed the coding process, both authors reviewed the classification and resolved eventual disagreements (only 3% articles reported differences in the final output).

The legitimacy theory affirms that a firm can exist only if it acts in congruence with society’s values and norms (Dowling and Pfeffer 1975).

The item “Other theories” is not reported in the table.

Five articles did not clearly embrace any theory (or embraced other theories not investigated here).

Caveat: we do not consider conceptual articles because they are excluded from this research. The total number of conceptual articles was 13.

Number of articles that study the topic divided total number of articles (98).

Caveat: the meaning of “independent directors” differs widely between countries (Zattoni and Cuomo 2010).

Namely, the risk that Islamic finance transactions may be challenged and contested is whether they do not comply with Sharia (Islamic law). For example, an investment in companies that offer goods considered contrary to Islamic principles (e.g., alcohol companies) could be contested.

Typical under “CG Anglo-Saxon model”.

In Anglo-American countries, the board is mainly composed of independent directors who usually have two main responsibilities: (a) aligning shareholders’ and managers’ incentives and monitoring executive directors’ decisions (monitoring role) and (b) giving advice and counsel for strategic decisions (advising role).

Here it is understood as a synonym for independent directors.

Typical under “CG Continental European Model”.

In some countries, for example, Germany, the supervisory board can include employee representatives.

Please refer to https://www.eba.europa.eu/sites/default/documents/files/documents/10180/1972987/eb859955-614a-4afb-bdcd-aaa664994889/Final%20Guidelines%20on%20Internal%20Governance%20%28EBA-GL-2017-11%29.pdf?retry=1 and https://www.eba.europa.eu/single-rule-book-qa/-/qna/view/publicId/2013_228.

The Q1 Scimago covers 381 scientific journals. Hence, the number of scientific journals cannot be considered small.

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Titel: Corporate Governance in the Banking Sector (CGBS): A Literature Review
verfasst von: Bruno Buchetti
Alessandro Santoni
Verlag: Springer International Publishing
Buch: Corporate Governance in the Banking Sector
Print ISBN: 978-3-030-97574-6

Electronic ISBN: 978-3-030-97575-3

Copyright-Jahr: 2022
DOI: https://doi.org/10.1007/978-3-030-97575-3_3

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